The 50,000-square-foot industrial building that will be constructed at Milwaukee's new Century City development is to be completed by the end of the year.

And, when construction begins this summer, it likely will have prospective tenants for a substantial portion of the space, said city Development Commissioner Rocky Marcoux and the project's developer.

The building, featured in Mayor Tom Barrett's annual "state of the city" speech, will be developed by Fox Point-based General Capital Group.

It will be the first new building at Century City, the $35 million redevelopment of a large portion of the former A.O. Smith/Tower Automotive Inc. complex into a business park, housing and other new uses.

Marcoux said there are prospective tenants, which he declined to identify, with some businesses interested in leasing up to 20,000 square feet.

"There's been some interest out there," said Sig Strautmanis, General Capital partner. "It's very possible we could have a user in hand before we start."

General Capital will provide equity financing and the primary construction loan, Marcoux said. A secondary loan will come through the Milwaukee Economic Development Corp., a nonprofit business lender affiliated with the city, he said.

The building will cost $5 million to $6 million to develop.

It will be just south of W. Capitol Drive and west of N. 31st St., giving it high visibility to help promote Century City, Marcoux said.

General Capital plans to eventually develop a second 50,000-square-foot building just south of the initial building, Strautmanis said.

Most of the former A.O. Smith buildings on the 84-acre site, bordered mainly by W. Capitol Drive, W. Hopkins St., railroad tracks, W. Townsend St. and N. 27th St., have been demolished, leaving the vacant parcels to be sold for General Capital's buildings and other light industrial developments.

General Capital plans to buy 8 acres for its project, Strautmanis said.

The business park will have parcels totaling around 50 to 60 acres. The listed sale price will be $55,000 per acre, said Jeff Fleming, a Department of City Development spokesman.

The demolition work, environmental cleanup and creation of new streets and other public improvements are being financed with city, state and federal funds.

The buildings preserved at the site include the A.O. Smith historic office building and Art Deco research center along N. 27th St., and an industrial building at the northwest corner of N. 27th and W. Townsend streets.

Train maker Talgo Inc. is leasing around half of that 300,000-square-foot industrial building as it continues a legal battle with the State of Wisconsin over a voided high-speed rail contract.